But if I knew how to manage my portfolio safer and smarter than most hedge fund managers, I could realistically grow my wealth.
Investing in development
One of Facebook’s key strategies is prioritizing product development investments to create engaging interactions between its users, developers, and advertisers. It continues to invest significantly in improving its core products such as News Feed, Timeline, and Photos, developing new products, and enabling new platform apps and website integrations.
Facebook announced changes last month to its News Feed algorithm that will lead to lower organic reach for posts by pages. This move has invited criticism from page administrators, who saw their posts go from reaching about 16% of users who like their pages to between 2% and 3%. According to news reports, Facebook’s tweak wasn’t actually aimed at showing “higher-quality content” in the News Feed but bringing down the reach of brands that had pages on Facebook. These pages acted as free ads for the brands and are maintained by social media marketing companies. The tweaking effectively meant that brands wanting exposure will have to buy ads to make up for the lost reach.
In its announcement, Facebook said:
Facebook’s algorithm uses a number of factors to establish which posts should be shown to users. Previously called EdgeRank, the algorithm now has more than 1,000 contributing factors, but it still focuses on three main influences: affinity, weight, and time decay.
“Affinity” is defined as a user’s relationship with the person or page that created the specific Facebook object—essentially, how much the user interacts with that person or page. Affinity is built by repeat interactions with a brand. Actions such as commenting, “liking,” sharing, clicking, and even messaging can influence a user’s affinity.
“Weight” is determined by the object type. For instance, whether it’s a photo, video, or link. Commenting is more involved and therefore deemed more valuable than a “like.” In the weighting system, comments would have a higher value than a “like.”
“Time decay” refers to how long the Edge has been alive. The older it is, the less valuable it is. An Edge is basically everything that “happens” in Facebook. Examples of Edges would be status updates, comments, likes, and shares.
Pandora (P) is another web company that relies heavily on its algorithms. To learn more about Pandora’s leading algorithms, see Must-know: Why Pandora has held on to dominant market share.
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